Major banks clarify Ansett exposure

The Australian Prudential Regulation Authority is confident that the major banks have the ability to absorb any losses which may stem from the collapses of Ansett and Pasminco.

Australian Prudential Regulation Authority (APRA) chief executive Graeme Thompson said the major banks are very well capitalised and he did not think the big four were at risk because their impaired assets are at a historically low level.

Many of them had already raised their bad debt provisions in the last few months after the collapse of a number of other Australian corporates and a slowdown in the global economy.

Total exposure of all the majors banks to both Ansett and Pasminco has been confirmed around $1.1 billion

AAP/AFR Online, 21/9/01. Australian Financial Review, Damien Lynch, 19/9/01